If you would like more information on this or would like to know how Smith Cooper can help you apply for and submit PPE to HMRC, please contact Laura Parr or Mick Verney in our Employment Tax team. Use the PSA1 form to communicate to HMRC the value of the items contained in your PAY settlement agreement. For customers/customers who have already applied for PPE and been awarded the P626 contract, HMRC must receive the signed form by post by 6 July, to ensure that all costs and services mentioned in the contract are covered by PSA. Please submit the form: a new version of the PSA1 form has been developed and should be used for the fiscal year 2018 – 2019 and more. Use the PSA1 form to calculate the total amount you must pay. If you don`t, HMRC calculates the amount and you may be charged more. If you do not yet have a PSA and you miss this deadline, it is possible to make a voluntary disclosure and settlement for items that you would otherwise have included in PPE. However, in certain circumstances, HMRC may impose penalties and collect interest on amounts so paid. PPE is an administrative agreement that allows employers to pay taxes and NICs on behalf of their employees on certain taxable expenses or benefits, for example.B. employee maintenance and employee incentive bonuses, instead of returning them in kind on P11D forms or including them in the pay slip. You need the following details to calculate the tax/NIC due: Make sure you select the appropriate form, as you need to register your employees separately based on the tax rate they pay.

Workers living in countries with decentralised tax power (Scotland or Wales) may be subject to different tax rates. From 2018-19, HMRC switched to a new PSA simplified hardening process. The new procedure replaces the previous procedure, where employers had to apply for PPE each year and ensure that signed agreements were in force until a given date. Under the new process, an employer, once it has signed a permanent PSA agreement, must not do otherwise unless the PSA agreement needs to be amended or HMRC or the customer decides that PPE is no longer needed. From April 2018, the annual PPE renewal process has been simplified, so employers are not required to agree in advance on PPE with HMRC each year if the categories remain the same. According to the agreement, PSA will remain in force until either the employer or HMRC cancels or amends it. If you already have PPE, you should ask yourself if it needs any changes for the 2019/20 fiscal year. . .